TCM1000491 - How to calculate the manual payments using the Calculation sheet

Step 1

Note: The first scheduled payment will be due 28 days after the next household pay day, recorded at section 3 of the 鈥楥alculation鈥� sheet, or on the award end date if this is less than 28 days after the next household pay day.

On the 鈥楥alculation鈥� sheet

  • select the 鈥楽chedule of Payments鈥� tab

Note: The default entry in the 鈥楩requency鈥� box is 4 weekly. If the customer has requested weekly payments, select the 鈥楩requency鈥� box, select the arrow and then select 鈥榃eekly鈥�.

  • select the appropriate reason for issue

Note: The award end date is automatically completed.

  • enter the next household pay day, as recorded at section 3 of the 鈥楥alculation鈥� sheet in the first row of the 鈥楧ue Date鈥� column
  • enter the year end date

Note: This will be the end date for the tax year being calculated or the award end date, if earlier.

Note: The 鈥楧ue Date鈥� column will be populated with the payment due dates up to the end of the award period.

  • select the 鈥楥alculation sheet鈥� tab
  • go to Step 2.

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Step 2

Note: The 鈥楤alance to Pay鈥� amount in the 鈥楻ounding鈥� table in section 4 will automatically display the total WTC and CTC balances shown in the 鈥橞alance to Pay鈥� table in section 4, or if greater the total adjusted remaining WTC and/or CTC entitlement shown in the 鈥楨ntitlement to next HH pay day鈥� table in section 3.

If the 鈥楤alance to Pay鈥� amount in the 鈥楻ounding鈥� table is positive for both tax credits

  • divide the amounts recorded in the 鈥楻ounding鈥� table at section 4 of the 鈥楥alculation鈥� sheet by the figure in the 鈥楴umber of scheduled payments鈥� box on the Schedule of Payments
  • go to Step 3.

If the 鈥楤alance to Pay鈥� amount in the 鈥楻ounding鈥� table is positive for one tax credit and negative for the other

  • divide the amount recorded in the 鈥楾otal鈥� column on the 鈥楤alance to Pay鈥� line of the 鈥楻ounding鈥� table at section 4 of the 鈥楥alculation鈥� sheet by the figure in the 鈥楴umber of scheduled payments鈥� box on the Schedule of Payments
  • go to Step 3.

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Step 3

Round the results down to the nearest penny. This will be the amount of the regular scheduled payments for each tax credit

Note: Payments of less than 拢1 mustn鈥檛 be made. Any shortfall will be picked up and dealt with by the tax credits computer in due course.

  • select the 鈥楽chedule of Payments鈥� tab

Note: If the adjusted WTC and/or CTC figure applies, 鈥業n year restriction applied鈥� will display.

  • enter the regular scheduled payment amount in the 鈥榃TC鈥� and 鈥楥TC鈥� columns of the Schedule of Manual payments form for all rows with a Due Date entered except the first row
  • make a note of the total amounts of scheduled manual payments
  • select the 鈥楥alculation sheet鈥� tab
  • enter the amount of scheduled manual payments in the 鈥楻ounding鈥� table at section 4 of the 鈥楥alculation鈥� sheet. The amount of rounding payment is automatically calculated
  • go to Step 4.

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Step 4

Calculate the amount of the first or only manual payment. The first manual payment will be

  • the amount of any arrears, recorded at section 4 of the 鈥楥alculation鈥� sheet

and

  • the amount of any rounding payment, recorded at section 4 of the 鈥楥alculation鈥� sheet

Note: Payments of less than 拢1 mustn鈥檛 be made. Any shortfall will be picked up and dealt with by the tax credits computer in due course.

  • on the 鈥楥alculation鈥� sheet, select the 鈥楽chedule of Payments鈥� tab
  • record the result in the first row under the 鈥榃TC鈥� and 鈥楥TC鈥� columns of the 鈥楽chedule of payments鈥� table. The total amounts will be automatically calculated
  • print off the 鈥楽chedule of Payments鈥� and attach it to the case papers
  • select the 鈥楥alculation sheet鈥� tab
  • print off the 鈥楥alculation鈥� sheet and attach it to the case papers.